AI Investors Are Soul-Searching

Anyone involved in artificial intelligence right now has to be entering the weekend deeply introspective about when this technology will actually start making businesses money. 

One by one, big tech companies have spent most of the past two weeks telling shareholders about their mammoth investments in AI that sent capital expenditures skyrocketing. Microsoft and Amazon each grew capex more than 50% in the calendar second quarter compared with one year prior; Google grew capex more than 90% on that basis; Meta’s capex grew more than 30%, according to S&P Global Market Intelligence. Revenue from these investments is still modest compared to that spending.